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Press Release - 1 September 2003

The Jersey Financial Services Commission has today, 19th December 2003 issued its quarterly report for the period 1 July 2003 to 30 September 2003.

Headlines:

  • Bank deposits fell during the quarter by 0.4% to £155.7 billion.
  • The total value of funds under investment management has increased by 3.2% during the last 12 months.
  • The value of Collective Investment Funds held in the island is at an all time high at £108.2 billion.

Bank Deposits

Jersey bank deposits have remained at a similar level to those seen during the last quarter at £155.7 billion. There has in fact been a small decrease of £627 million (0.4%) in the total reported funds held on deposit over the last quarter. However there has been a 14% increase over the same quarter last year. (see Appendix B).

Approximately 85% of bank deposits are held in currencies other than sterling and the continued weakness of many of these currencies against sterling over the quarter will have had an effect on the reported values in sterling. Therefore, the underlying value of deposit balances in denominated currencies has continued to trend upwards.

The number of banking licences in issue remains at 55.


Figure 1

BANK DEPOSITS
(£ MILLION)AS AT 30 SEPTEMBER FOR EACH OF THE PAST FOUR YEARS

Funds

As of the 30th June 2003 the value of funds in the Island stood at £98.3 billion. This is an increase of 2.6% since the last quarter. This increase is due to the rise in the value of the underlying portfolios as a result of the recent improvement of the performance of the stock markets. Whilst we have seen 11% increases in the Dow Jones and FTSE indices during the past three months, these rises have yet to recapture the confidence of investors. A number of funds hold their portfolios in US dollars and the strength of sterling against the dollar over the quarter has had a negative effect on the reported values. Compared to the same quarter last year, the values of funds have decreased by 7.9 billion or 7.5%(See Appendix A).

Figure 2

COLLECTIVE INVESTMENT FUNDS
(£ MILLION) AS AT 30 JUNE DURING THE PAST FOUR YEARS

Company Incorporations

The total number of incorporations during this quarter was 442, which shows a decrease of 47% over the same period last year. This trend has continued from the last quarter. We believe this is due primarily to the current dip in the global economy and the changes in UK legislation.

The number of 'fast track' incorporations for this quarter was 187 and the number of normal company incorporations for this quarter was 255. (See Notes to Editors.)

Against their self-imposed target of 95%, Registry recorded a 99.6% rate for normal two-day incorporations and a 75% rate for fast track companies for the quarter. (See Notes to Editors.)

Figure 3 (see also Appendix C) illustrates the number of new company incorporations throughout the past four years.


Figure 3

TOTAL NEW COMPANY INCORPORATIONS IN THE FIRST SIX MONTHS OF
THE PAST FOUR YEARS

Investment Business

The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £24.1 billion. When compared to the same quarter last year, this shows a decrease of 18.2%. Against the last quarter this represents a 13.8% decrease, continuing the recent trend and once again indicating the lack of investor confidence in the global markets.

As at 30 June 2003 the total number of clients of investment managers was 20,394.

Insurance Business

There were four new Category A licences issued during this second quarter of the year, no new Category B Insurance permits and no permits were cancelled.

Therefore as at 30 June 2003, there were 166 Category A permits in issue and 19 Category B permits.


Figure 4

ALL INSURANCE LICENCES AS AT 30 JUNE DURING THE PAST FOUR YEARS

Conclusion

Richard Pratt, Director General of the Commission, commenting on the quarterly statistics said today, "Despite the continuing fall in the number of Company Incorporations we have seen during the recent past, the Commission remains positive about the figures seen in this report. Bank Deposits have remained at a high level and the value of the Islands funds has increased for the first time in six months. The performance of the Island's finance industry during the past quarter has shown that the Island continues to attract business during this time of difficult trading conditions, and that can only bode well for the Island as a whole."

Appendix A

Annual growth in Collective Investment Funds to date. £ Millions

DATE TOTAL VALUE
£ MILLIONS
NUMBER OF FUNDS TOTAL NO.
OF SEPARATE POOLS
30 Jun 1998 37,818.5 334 1170
30 Sep 1998 37,798.7 329 1190
31 Dec 1998 45,310.5 344 1205
31 Mar 1999 52,189.2 343 1260
30 Jun 1999 57,222.1 323 1259
30 Sep 1999 58,667.5 323 1321
31 Dec 1999 71,579.5 324 1361
31 Mar 2000 80,726.2 330 1401
30 Jun 2000 87,082.8 314 1373
30 Sep 2000 90,310.5 313 1410
31 Dec 2000 90,866.8 321 1423
31 Mar 2001 94,758.3 313 1438
30 Jun 2001 105,612.6 302 1575
30 Sep 2001 94,823.8 296 1696
31 Dec 2001 103,375.9 327 1591
31 Mar 2002 106,854.0 353 1503
30 Jun 2002 106,228.4 368 1528
30 Sep 2002 96,912.6 403 1762
31 Dec 2002 105,136.4 449 1856
31 Mar 2003 95,806.9 472 1877
30 Jun 2003 98,285.7 466 1841

 

Appendix B

Annual growth in Banks and Bank Deposits to date. £ Millions

DATE NO OF BANKS STERLING CURRENCY TOTAL
30 Jun 1998 79 37,848 61,937 99,785
30 Sep 1998 79 39,220 64,437 103,657
31 Dec 1998 79 36,491 66,785 103,276
31 Mar 1999 77 36,411 68,285 104,696
30 Jun 1999 77 38,245 70,774 109,019
30 Sep 1999 77 38,418 69,003 107,421
31 Dec 1999 77 37,883 70,522 108,405
31 Mar 2000 73 39,250 69,992 109,242
30 Jun 2000 73 40,862 74,217 115,079
30 Sep 2000 73 38,933 77,001 117,934
31 Dec 2000 74 39,827 77,423 117,250
31 Mar 2001 70 41,227 80,949 122,176
30 Jun 2001 70 42,377 83,520 125,897
30 Sep 2001 70 42,115 86,955 129,069
31 Dec 2001 64 44,057 88,116 132,173
31 Mar 2002 61 43,324 91,716 135,041
30 Jun 2002 62 43,136 89,307 132,443
30 Sep 2002 62 43,213 93,269 136,482
31 Dec 2002 59 47,489 91,840 139,329
31 Mar
2003
55 47,688 107,931 155,619
30 Jun
2003
55 47,414 109,008 156,421

Appendix C

QUARTERLY COMPANY INCORPORATIONS
 
31 March
30 June
30 September
31 December
1999
645
625
720
709
2000
970
727
684
683
2001
680
679
611
790
2002
889
833
623
484
2003
533
442
-
 

Appendix D

ALL INSURANCE LICENCES ISSUED AS AT 31 MARCH
30 June 2000
181
30 June 2001
186
30 June 2002
179
30 June 2003
181

For further information:

Richard Pratt
Director General
Jersey Financial Services Commission

Telephone: +44(0) 1534 822011
Facsimile: +44(0) 1534 822001
Email: r.pratt@jerseyfsc.org

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